Yesterday, I received an updated credit card agreement from a credit card issuer for a card that I only use a couple of times a year. The interest rate will become variable, the fee for cash advances will increase and late fees will increase. Thanks for telling me.
Since I use the card just for certain purposes and pay it off when I receive the bill, this isn’t really a big issue but if I had been a user who pays only some of the bill when it comes this could make a big difference in my payments. Credit cards are so that I don’t have to use cash all the time, especially for large amounts of craft supplies, gifts over $25 and online purchases.
Changing the fee structure may not affect people like myself who pay on time, but what if you are habitually late, though you do pay, an added $5 or $6 per month could be an additional $60-$72 for late payers. The change in the interest rate for people who pay more than the minimum or carry a balance could put a dent into a person’s checking account.
Credit card companies have to figure out how and where they can make their money since the rules are changing. Read the important parts of your statements that you generally don’t read each time. Most people are generally checking for purchases they haven’t made. Look at the interest rate, information on late fees, fee for cash advances, grace period, minimum finance, payment due date and other things. Even if you have had your card for years, the new credit card law has made card issuers make changes now. In fact, I had a bill due on a different date than it normally was for a month and then go back to the regular due date. In any case, I paid on time, so I had no worries but people who don’t stay abreast of due dates and other supposed minutia may find themselves with less cash to spare.
Check your statements! Read this link for more things to be aware of on your cc statements.
Sphere: Related Content
